The table that follows denotes selected characteristics of absorption costing and/or variable costing. 
Changes to grid above:
Lower income when inventories rise (NOT "net" income)
External financial statement USE (NOT "users")
Required:
Evaluate each product-cost, period-cost, and income-statement/disclosure characteristic and determine whether it relates to absorption costing, variable costing, or both methods. Place an "X" in the proper column.
Definitions:
Asset Management
The process of developing, operating, maintaining, and selling assets in a cost-effective manner.
Debt Management
The process of strategizing to reduce or pay off outstanding debts.
Profitability
A metric or concept that measures the ability of a company or business to generate income relative to its revenue, assets, or shareholders' equity, typically expressed as a percentage.
Debt to Stockholders' Equity Ratio
A financial metric that shows the balance between the debt and equity shareholders have employed to fund a company's assets.
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